INVL Baltic Forests Fund I closes with average annual return of 27.3%

The leading asset management company in Lithuania INVL Asset Management has closed its first managed fund that invested in forests INVL Baltic Forests Fund I, which earned investors an average annual return of 27.3%.

On 6 June, the Board of the Bank of Lithuania approved amendments to the rules of the closed-end investment fund for informed investors INVL Alternative Assets Umbrella Fund, managed by INVL Asset Management, and the closure of INVL Baltic Forests Fund I.

INVL Baltic Forests Fund I was closed following the sale of shares in forest management companies and the redemption of the remaining units of the fund. The fund had attracted 97 investors and paid out EUR 24.87 million to investors over its history, earning them an average annual return of 27.3%, which was significantly higher than the 8% average annual return the fund was targeting,” says Sigita Bizulienė, Manager of INVL Baltic Forests Fund I.

Established in 2017, INVL Baltic Forests Fund I had invested in Lithuania’s forests with a focus on sustainable forestry in our country. In total, the Fund managed more than 5,600 hectares of forest. The first sale of the Fund’s portfolio took place at the end of 2019, when approximately 4,290 hectares of forest were sold. In December 2021, the Fund sold about 1,340 ha of its holdings.

“The performance of the first fund to invest in forests was truly impressive. We are currently working intensively with the second fund and see a lot of potential for its growth,” says Martynas Samulionis, Managing Partner of INVL Sustainable Timberland and Farmland Fund II (STAFF II).

The forest investment activity continues with STAFF II, established more than a year ago, which has by now raised €58.4 million from investors.

STAFF II has already invested in the Baltic states and plans to expand its portfolio by investing in sustainably developed forest and agricultural land in the Central and Eastern European countries that are members of the European Union, which offer attractive investment returns and a stable regulatory environment. The focus is on sustainable management of forests and farmland, taking into account not only preservation of nature but also social responsibility. The Fund’s activities are based on sustainable forestry standards, and it aims to introduce sustainable farming principles on agricultural land.

The Fund, launched in the second half of 2020, is administered by one of Europe’s largest providers of fund services Apex Group and is open to institutional and private investors from EU countries. The Fund operates under the laws of the Grand Duchy of Luxembourg and invests in individual countries in accordance with the regulatory restrictions imposed by those countries.

About INVL Sustainable Timberland and Farmland Fund II (STAFF II)

The fund is administered by Apex Group, one of Europe’s largest providers of fund services. The Fund invests in sustainable forest and agricultural land in the Baltic Sea Region and the Central and East European countries that are members of the European Union. It is open to institutional and private investors from EU member states.